Stakeholder analysis is the process of identifying the people and groups connected to a project, understanding how they can affect it or be affected by it, and deciding how they should be involved or engaged.
Stakeholder analysis helps project managers focus attention, anticipate resistance, improve decisions and plan communication. This guide explains the complete process, demonstrates the widely used power–interest grid through a real university project example, and shows how the findings should drive an engagement strategy.
What is stakeholder analysis?
Stakeholder analysis is the systematic process of identifying stakeholders, understanding their interests, influence, impact, expectations and relationships, and using that information to decide how they should be involved or engaged.
Stakeholder analysis and stakeholder mapping are related, but they are not identical. Analysis is the research and judgement used to understand each stakeholder. Mapping is a visual way of presenting some of those findings, for example on a power–interest matrix.
Stakeholder analysis is not simply data analytics, a one-off workshop or a finished diagram. It should be revisited as the project and its relationships change, and its value comes from applying the findings to decisions, communication and engagement.
Why conduct a stakeholder analysis?
A good analysis gives the project team a shared, evidence-based view of its stakeholders. It can help you:
- identify people or groups who may otherwise be missed;
- understand stakeholder interests, expectations, concerns and potential impacts;
- recognise who can influence decisions, resources, approvals or delivery;
- anticipate support, resistance, risks and opportunities;
- prioritise limited communication and engagement resources; and
- choose an appropriate level and method of involvement for each stakeholder group.
How to conduct stakeholder analysis in six steps
The six steps below take the project team from an initial stakeholder list to an evidence-based engagement plan.
1. Identify stakeholders
Start by listing every person, group or organisation that can affect the project, is affected by it, has an interest in it, or must be consulted. Use project documents, organisation charts, lessons from similar projects, legal requirements and a team workshop to reduce the chance of missing someone.
See the detailed guide to identifying stakeholders.
2. Gather evidence
Collect enough evidence to understand each stakeholder rather than relying only on job titles or assumptions. Useful sources include existing records, interviews, workshops, surveys, previous interactions, local knowledge and direct stakeholder feedback.
3. Assess interest, influence, impact and attitude
Assess the factors that matter to the decisions you need to make. Record the evidence and assumptions behind each assessment so that the team can challenge, test and update them.
| Factor | Question to ask |
|---|---|
| Interest | What does the stakeholder care about, need or expect from the project? |
| Influence or power | What decisions, resources, approvals or people can they affect? |
| Impact | How strongly will the project affect them, positively or negatively? |
| Attitude | Are they supportive, neutral, uncertain or resistant? |
| Expectations | What outcome, information or level of involvement do they expect? |
| Relationships | Who influences them, and whom do they influence? |
| Information needs | What do they need to know, in what format and how often? |
4. Group or map stakeholders
Group stakeholders with similar interests, impacts, information needs or engagement requirements. A matrix or map can then make the priorities easier to discuss, but the map should be supported by the evidence collected in the earlier steps.
5. Plan stakeholder engagement
Convert the analysis into actions. Decide who needs close involvement, consultation, regular updates or light-touch monitoring. Assign relationship owners, communication frequencies, messages, channels and escalation routes.
6. Review and update the analysis
Stakeholder interests, relationships, influence and attitudes can change. Review the analysis at project milestones, after significant decisions, when the scope or leadership changes, and whenever new stakeholder risks or opportunities emerge.
Worked stakeholder-analysis example: university building project
While identifying stakeholders for a large university building project, I found that nearly 20,000 individuals could be involved or affected. Treating every person separately would have made the analysis difficult to use, but many people had similar interests and could be grouped for planning purposes.
The first practical step was to record the issues most likely to matter to each stakeholder group. The example below shows how interests varied across finance, environmental impact, legislation and employment, business continuity and reputation.
This interest analysis supports a more relevant communication plan. For example, local residents may need information about environmental effects and disruption, while senior management may focus more on finance, legal duties, continuity and reputation.
The table does not yet show how much influence each group has. The next step is to combine the detailed interest evidence with an assessment of influence so that the project team can set engagement priorities.
Download the stakeholder interest template
Using the power–interest grid
A power–interest grid is a simple stakeholder-mapping method that plots each stakeholder or group according to two dimensions:
- Power or influence: the stakeholder's ability to affect decisions, resources, approvals or outcomes.
- Interest: the degree to which the stakeholder cares about, is involved in or is affected by the project.
The grid does not replace the detailed interest and impact analysis. It summarises part of that evidence so that the team can prioritise attention and choose an appropriate engagement approach.
The four groups are:
- Manage closely: high power and high interest.
- Keep satisfied: high power and lower interest.
- Keep informed: lower power and high interest.
- Monitor: lower power and lower interest.
How stakeholder analysis drives engagement strategy
Placing stakeholders on a grid is only the prioritisation step. The analysis becomes useful when each position is converted into a communication and engagement strategy.
| Stakeholder group | Typical characteristics | Recommended engagement strategy |
|---|---|---|
| Manage closely | High power and high interest | Involve them in important decisions, engage frequently, assign clear relationship ownership and address concerns early. |
| Keep satisfied | High power and lower interest | Consult them on important issues, provide concise senior-level updates and avoid overloading them with unnecessary detail. |
| Keep informed | Lower power and high interest | Provide regular updates, invite feedback and involve them in appropriate consultation or low-risk activities. |
| Monitor | Lower power and lower interest | Use light-touch communication, monitor for changes and reassess them if their influence, interest or project impact increases. |
In some established stakeholder-analysis models these groups are described as key players, meet their needs, show consideration and least important. The labels describe management priority within the model, not the value or rights of the people involved.
High-power, high-interest stakeholders are often described as key players. They normally require regular engagement and involvement in important governance or decision-making.
Download the stakeholder analysis template
How to use the results of stakeholder analysis
The value of stakeholder analysis comes from the decisions that follow it. Use the findings to:
- set engagement priorities and assign an owner for important relationships;
- decide how frequently each stakeholder should receive information;
- adapt messages to stakeholder interests, concerns and preferred channels;
- choose where consultation, collaboration or formal approval is needed;
- identify stakeholder-related risks, opportunities and escalation routes;
- plan actions for supporters, undecided groups and potential opponents; and
- update the stakeholder register, communication plan and engagement plan.
What does stakeholder analysis produce?
Depending on the project, the outputs may include:
- an updated stakeholder register;
- evidence-based stakeholder profiles;
- a matrix, map or relationship network;
- priorities for communication and engagement;
- named relationship owners;
- stakeholder-related risks and opportunities;
- agreed actions and communication frequencies; and
- review dates and triggers for reassessment.
A completed matrix should not be treated as the final output. It is a decision-making tool that should lead to specific actions, owners and review dates.
Going beyond the basic stakeholder matrix
Adding influence relationships
A power–interest grid shows where stakeholders sit, but it does not show the relationships between them. Adding influence lines can reveal who affects whom, which stakeholders occupy central positions and the routes through which information, concerns or support may travel.
This technique is adapted from Eden and Ackermann’s approach to analysing stakeholder influence. Review the matrix as a group and ask: Who influences whom, and in which direction? Draw directional lines between the relevant stakeholders and, where appropriate, use wider or darker lines to represent stronger influence.
Once the lines have been added, look for stakeholders with several incoming or outgoing connections. They may be more influential than their formal role or position on the matrix initially suggests. The completed analysis can also help the team identify intermediaries, communication routes and relationships that require closer management.
Using a stakeholder mind map
A stakeholder mind map can support collaborative workshops by helping participants identify groups, record relationships and organise evidence before creating a formal matrix or engagement plan.
A stakeholder-analysis video tutorial can also help a team prepare for a workshop. For larger or frequently changing stakeholder lists, dedicated stakeholder-analysis software may make collaboration and updates easier.
Choosing the right stakeholder-analysis method
The power–interest grid is useful, but no single method suits every project. Choose the model that best reflects the decisions you need to make.
| Method | Best used for | Learn more |
|---|---|---|
| Power–interest grid | Prioritising communication and management attention. | See the worked method on this page |
| Stakeholder salience | Comparing power, legitimacy and urgency. | Stakeholder salience |
| Attitude mapping | Understanding support, opposition and likely behaviour. | Stakeholder attitude mapping |
| Stakeholder SWOT | Exploring stakeholder-related strengths, weaknesses, opportunities and threats. | Stakeholder SWOT |
| Pleasure and displeasure analysis | Identifying what stakeholders may welcome or dislike about a proposal. | Pleasure and displeasure list |
Common stakeholder-analysis mistakes
- Relying on job titles alone. Formal authority does not always reflect real influence.
- Confusing power with interest. A powerful stakeholder may have little day-to-day interest, while a highly affected stakeholder may have limited formal power.
- Ignoring impact. People who are strongly affected still require consideration even when they cannot control the project.
- Treating a group as uniform. Members of the same department or community may have different priorities and attitudes.
- Scoring without evidence. Record why each assessment was made and identify assumptions that need testing.
- Using labels carelessly. Categories describe management priority within a model, not a person's value or rights.
- Failing to act on the findings. Convert the analysis into communication, engagement and risk actions.
- Treating analysis as a one-off workshop. Reassess stakeholders when scope, leadership, politics, impacts, attitudes or relationships change.
Stakeholder analysis FAQs
When should stakeholder analysis be carried out?
Start it during project initiation or early planning, then review it when scope, governance, leadership, impacts or stakeholder attitudes change.
Who should take part in the analysis?
Use a small group with different perspectives, such as the project manager, sponsor, subject specialists, communications or engagement staff, and people with direct knowledge of key stakeholder groups.
What is the difference between stakeholder analysis and stakeholder mapping?
Stakeholder analysis is the broader process of identifying and understanding stakeholders and deciding how to engage them. Stakeholder mapping is a visual technique used within that process to display selected findings.
Is a power–interest grid always the best method?
No. It is a simple and useful prioritisation tool, but another method may be better when legitimacy, urgency, impact, attitude or stakeholder relationships are more important to the decision.
What tools can be used for stakeholder analysis?
Common tools include stakeholder registers, interest and impact tables, power–interest grids, salience models, attitude maps, relationship networks, workshop templates and specialist stakeholder-management software.
Stakeholder-analysis resources
- Free stakeholder analysis power–interest template
- Basic stakeholder-analysis method
- Complete stakeholder-analysis example
- BPM stakeholder analysis
- Career stakeholder analysis
- Stakeholder pleasure and displeasure analysis
- How to identify key stakeholders
- Stakeholder mind map
- Stakeholder salience
- All stakeholder map templates
Stakeholder-analysis references and further reading
Bryson, J. (1995), Strategic Planning for Public and Nonprofit Organizations (revised edition), San Francisco, CA: Jossey-Bass. Latest edition: Strategic Planning for Public and Nonprofit Organizations .
Eden, C. and Ackermann, F. (1998), Making Strategy: The Journey of Strategic Management , London: Sage Publications.
Office of Government Commerce (2007), Managing Successful Programmes, London: TSO, p. 51. Latest edition: Managing Successful Programmes .
Obeng, E. (1995), All Change!: The Project Leader's Secret Handbook , Financial Times/Prentice Hall.
Turner, R. (2008), Gower Handbook of Project Management, Gower. Latest edition: Gower Handbook of Project Management .
Next step: stakeholder planning
Use the findings from the analysis to create a practical stakeholder plan with relationship owners, communication actions and review dates.